Sensex, Nifty End Sharply Higher On Rate Cut Hopes; DLF Surges

Benchmark indices soared in trade after WPI inflation for July fell sharply raising hopes of a rate cut by the Reserve Bank of India (RBI) outside the policy meet. Hopes that a session of parliament would be called to pass the crucial GST Bill also boosted sentiments.

The Sensex ended the day with gains of 517 points and the Nifty rallied 162 points as banking stocks surged.

PSU Banking stocks led gainers with Punjab National Bank surging a near 7 per cent, while Bank of India, Bank of Baroda and Canara Bank rallied between 5-7 per cent.

Private sector banks like ICICI Bank, IndusInd Bank and Yes Bank also surged. Other rate sensitive stocks like those from the realty and auto sector were also boosted on hopes of the rate cut.

DLF surged a huge 14 per cent, while HDIL was up 10 per cent and Oberoi Realty was up 3 per cent. Auto stocks like Force Motors and Mahindra and Mahindra also gained group on hopes that rate cuts would boost demand for vehicles.

Shares in Glenmark Pharma and Indiabulls Housing saw robust buying after the MSCI India index saw addition of these two companies.

Meanwhile, markets in Europe were trading higher, while most of Asia ended the day with gains.